New Jersey vs New York — Cost of Living, Taxes & Income Reality
Data: 2026-Q2 · BLS · HUD · KFFQuick comparison
| Metric | New Jersey | New York |
|---|---|---|
| Cost of Living Index | 121 ✓ | 139 |
| Median Household Income | $104,294 ✓ | $85,820 |
| Median Rent | $2,500/mo ✓ | $2,800/mo |
| State Income Tax | 10.75% | 6.85% ✓ |
Tax reality
On a $70,000 salary, you keep about $2,730 more per year in New York. That works out to roughly $228/month in additional take-home.
Housing reality
New Jersey
Median rent $2,500/mo
New York
1BR $2,655 – $2,655/mo
Major cities compared
New Jersey
New York
Purchasing power
Your $70,000 in New York City feels like approximately $70,000 in New York City, once housing and taxes are accounted for.
Who benefits from each
- Remote workers and high earners who want to keep more of their paycheck lean toward New York for its lower tax burden.
- Anyone prioritizing a lower overall cost of living will find New Jersey stretches a paycheck further.
- Workers chasing higher nominal salaries may prefer New Jersey, where median household income is higher.
New Jersey vs New York — FAQ
Is it cheaper to live in New Jersey or New York?
By cost of living index, New Jersey is the cheaper of the two (New Jersey: 121, New York: 139; national average = 100). Source: C2ER Cost of Living Index.
Which state has lower income taxes, New Jersey or New York?
New York leaves more in your pocket. On a $70,000 salary, you keep about $2,730 more per year in New York. Source: Tax Foundation 2025, IRS 2025.
What is the median income difference between New Jersey and New York?
New Jersey has the higher median household income (New Jersey: $104,294, New York: $85,820). Source: Census ACS 2024.
Should I move from New Jersey to New York?
It depends on your priorities. New Jersey offers a lower cost of living, while New Jersey has higher median incomes. Weigh taxes, housing, and career options together. This is a picture, not a verdict.